Newsquawk Daily European Equity Opening News - 1st February 2023

1st February 2023

ASIA

Asia-Pac equity markets traded higher after the positive lead from Wall St where stocks advanced into month-end which was facilitated by the softer-than-expected Employment Cost growth in the US, although gains were capped by the approaching FOMC rate decision and after disappointing Chinese Caixin Manufacturing PMI data. ASX 200 (+0.3%) was led higher by strength in the mining and materials sectors after a rebound in commodity prices and with an upgrade in the Final Australian Manufacturing PMI also conducive for risk appetite. Nikkei 225 (+0.1%) briefly climbed above 27,500 but closed off its highs amid a deluge of earnings releases and after Japan’s manufacturing activity was confirmed to have declined for a 3rd consecutive month. Hang Seng (+0.4%) and Shanghai Comp. (+0.4%) were positive albeit with momentum restricted after Chinese Caixin Manufacturing PMI missed forecasts and printed a 6th consecutive month in contraction territory which was in contrast to the recent rebound seen in China’s official PMIs.

SK Hynix (000660 KS) - Q4 (KRW): net -3.5tln (exp. -1.4tln), oper. -1.7tln (exp. -1.3tln), rev. 7.7tln (exp. 7.9tln). DRAM output is to fall in 2023 and expects double-digit percentage DRAM bit contraction in Q1 vs Q4, while it noted limited growth for NAND in 2023 and expects high single-digit NAND bit contraction in Q1 vs Q4. (Newswires)

EUROPEAN CLOSES

CLOSES: EURO STOXX 50 +0.12% at 4,163, FTSE 100 -0.17% at 7,771, DAX 40 +0.01% at 15,128, CAC 40 +0.41% at 7,082, FTSE MIB +1.00% at 26,559, IBEX 35 -0.17% at 9,034, SMI -0.82% at 11,285.

SECTORS: Consumer Stpl 0.61%, Consumer Disc 0.17%, Financials 0.07%, IT 0.04%, Telecoms -0.23%, Industrials -0.44%, Utilities -0.58%, Materials -0.66%, Energy -0.73%, Healthcare -0.81%

FTSE 100

OTHER UK COMPANIES

BROKER MOVES

DAX

OTHER GERMAN COMPANIES

Hannover Re (HNR1 GY) - Prelim. FY22 (EUR): Net 1.41bln (prev. 1.23bln). Gross Written Premiums +12.7% Y/Y. RoE 14.1% (prev. 10.8% Y/Y). "Based on the continued favourable market environment, Hannover Re expects to grow its Group Net Income to at least EUR 1.7bln for the 2023 financial year... Reinsurance revenue is expected to grow by at least 5% at constant exchange rates and the return on investment from assets under own management should be at least 2.4%." Hannover Re has increased its net major-loss budget for 2023 to EUR 1.725bln from EUR 1.4bln. (Newswires/Hannover Re)

BROKER MOVES

SAP (SAP GY) downgraded to Add from Buy at Baader Helvea

CAC

OTHER FRENCH COMPANIES

JC Decaux (DEC FP) - Co. has won a 15-year advertising contract in Macau. (Newswires)

Ubisoft (UBI FP) - Electronics Arts (EA) shares fell over 10% post-earnings after missing on top and bottom lines and delaying the release of a game.

BROKER MOVES

PAN EUROPE

BBVA (BBVA SM) - Q4 2022 (EUR): Net Income 1.58bln (exp. 1.56bln). NII 5.34bln (exp. 5.25bln). CET1 Ratio 12.6% (exp. 12.3%). Revenue 6.52bln (prev. 5.48bln). RoE 14.6% (prev. 11.4% Y/Y). Net fees and commission 1.32bln (prev. 1.24bln). Co. plans a EUR 422mln share buyback programme. Co. proposes a final 2022 dividend of EUR 0.31/shr. (Newswires/BBVA IR)

BROKER MOVES

Unicredit (UCG IM) upgraded to Overweight from Equal Weight at Barclays

Unicredit (UCG IM) upgraded to Buy from Hold at SocGen

SMI

Nestle (NESN SW) - Mondelez (MDLZ) shares rose 1.2% after topping EPS and Revenue forecasts.

Novartis (NOVN SW) - Q4 2022 (USD): Revenue 12.7bln (exp. 12.9bln). Core EPS 1.52 (exp. 1.42), Co. proposes a dividend of CHF 3.20 per share, +3.2% Y/Y; Sandoz planned spin-off on track for H2 2023. FY Net sales grew +4% Y/Y, Operating income declined -13%, and Core EPS was USD 6.12 +6%. GUIDANCE: Innovative Medicines sales expected to grow low-to-mid single digit and core operating income expected to grow mid-to-high single digit. Novartis (ex. Sandoz) sales expected to grow low-to-mid single digit, and core operating income expected to grow mid-to-high single digit. Sandoz sales expected to grow low-to-mid single digit and core operating income expected to decline low double digit, "reflecting required stand-up investments to transition Sandoz to a separate company and continued inflationary pressures". (Newswires/Novartis)

OTHER SWISS COMPANIES

BROKER MOVES

UBS (UBSG SW) reiterated with Overweight at JPMorgan Chase

SCANDINAVIA

Axfood (AXFO SS) - Q4 2022 (SEK): EBIT 502mln (exp. 602mln). Revenue 19.7bln (prev. 17.1bln Y/Y). Net 353mln (prev. 608mln). (Newswires)

Novo Nordisk (NOVOB DC) – FY22 (DKK): Sales 176.9bln (exp. 176.1bln), Operating Profit 74.8bln (exp. 75.7bln), Net Income 55.5bln, EPS 24.44. Q4: Revenue 48bln (47.2bln), EBIT 17.1bln (ep. 18.1bln). Initiating a new 12-month buyback program of up to 28bln. International operations sales growth surpassed the aspiration of 6-10% growth, the goal of transforming 70% of US sales has been attained. To propose a final dividend of 8.15/shr, taking the total for 2022 to 12.40/shr. FY23 Guidance: Revenue growth 13-19% and EBIT growth 13-19%. (Newswires)

SEB (SEBA SS) - Co's fourth largest shareholder Trygg-Stiftelsen is said to be looking to sell around 65mln shares via accelerated bookbuilding, according to reports. (Newswires)

BROKER MOVES

Elekta (EKTAB SS) upgraded to Buy from Hold at Nordea

Novozymes (NZYMB DC) downgraded to Hold from Buy at SEB

US

CLOSES: SPX +1.46% at 4,076, NDX +1.59% at 12,101, DJIA +1.09% at 34,086, RUT +2.45% at 1,931.

SECTORS: Materials +2.22%, Consumer Discretionary +2.22%, Real Estate +1.88%, Industrials +1.71%, Technology +1.44%, Communication Services +1.35%, Financials +1.34%, Health +1.3%, Consumer Staples +1.08%, Energy +0.89%, Utilities +0.71%.

Advanced Micro Devices Inc (AMD) - Q4 2022 (USD): Adj. EPS 0.69 (exp. 0.67), Revenue 5.6bln (exp. 5.5bln). Sees Q1 rev. 5.0bln-5.5bln (exp. 5.57bln). (GlobeNewswire) Shares rose 1.5% after market

Electronic Arts Inc (EA) Q3 2023 (USD): Adj. EPS 2.80 (exp. 3.05), Revenue 1.88bln (exp. 2.51bln). Delays Star Wars Jedi game to April 28th from March 17th. To stop development on Battlefield Mobile. FY Net bookings view 7.07-7.17bln (prev. 7.65-7.85bln). Q4 Net bookings view 1.68-1.78bln (exp. 2.22bln). (Newswires) Shares fell 10% after market

Mondelez International Inc (MDLZ) - Q4 2022 (USD): Adj. EPS 0.73 (exp. 0.70), Revenue 8.70bln (exp. 8.33bln). (GlobeNewswire)

PayPal (PYPL) - Co. is reportedly laying off 7%, approx. 2,000, of its employees, according to MarketWatch. (MarketWatch)

Snap Inc (SNAP) Q4 2022 (USD): Adj. EPS 0.14 (exp. 0.11), Revenue 1.30bln (exp. 1.31bln); not providing expectations for revenue or adj. EBITDA for Q1 '23. Adj. EBITDA 233.3mln (exp. 207mln). DAUs 375mln (exp. 374.7mln). ARPU 3.47 (exp. 3.49). North America sales 880.3mln (exp. 923.5mln), -5.6% Y/Y, Europe 218.6mln (exp. 201.4mln), +4.6% Y/Y, Rest of the world 200.9mln (exp. 180mln), +28% Y/Y. Given the work we have completed to reprioritise our cash cost structure, we believe we have a path to adj. EBITDA breakeven in Q1. Cos. internal forecast assumes Q1 revenue to drop 2-10%. (Newswires) Shares fell 15% after market

01 Feb 2023 - 06:45- Research Sheet- Source: Newsquawk